Gunvor Group has signed a heavily oversubscribed revolving credit facility (RCF) worth US$1.68bn to replace maturing debt tranches. The funds will be used to finance general corporate purposes and working capital requirements for Gunvor International and Gunvor SA.
The facility, which initially launched at US$1.1bn, consists of two tranches: tranche A is a US$1.3bn 364-day RCF with two 364-day extension options, and tranche B is a US$380mn three-year RCF with one 364-day extension option.
They replace the maturing tranche A of an existing US$1.39bn facility dated November 2017 and tranche B of a US$1.67bn facility dated November 2016.
“The confidence our banking partners have in Gunvor’s strategy is reflected in the strong support we’ve seen for this year’s RCF,” says Jacques Erni, CFO of the Gunvor Group. “Gunvor remains well positioned as the industry faces challenging market conditions.”
ABN Amro, Rabobank, Crédit Agricole, Credit Suisse, DBS Bank, ING, Natixis, Société Générale, UBS and UniCredit were bookrunning mandated lead arrangers (MLAs) on the deal.
Emirates NBD, Mizuho Bank and China Construction Bank joined as senior MLAs, and Apicorp, Citi and Sumitomo Mitsui Trust Bank as MLAs. Lead arrangers were MUFG Bank, Nedbank, DZ Bank, KfW-Ipex Bank, Commerzbank and SMBC.
Last month Gunvor became the first energy commodity trader to close a secured borrowing base facility that includes performance commitments related to its sustainability targets. The interest rate of the US$745mn loan will be dependent on the company’s year-on-year improvements in areas such as transparency, governance and the environment. If the company’s sustainability targets are met it will receive a discount. Likewise, a premium will be added to the interest if it underperforms on these targets.